Kellogg Insight | Kellogg School of Management

NOVEMBER 2009

Browse
Search

Posted	Title	Researcher	Other
200908Mysterious ProfitBurnsideA. Craig August 2009	Mysterious Profit200908BurnsideA. Craig Mysterious Profit The carry trade is an enigma in the financial world. When experts attempt to explain its continued profitability using traditional risk factors such as consumption growth, stock market returns, and other more complex predictors, they fail miserably. Sergio Rebelo and his colleagues discovered a tantalizing new way to minimize the risk posed by the unpredictable.	BurnsideA. Craig200908Mysterious Profit A. Craig Burnside Martin Eichenbaum Isaac Kleshchelski Sergio Rebelo
200704A Dollar ShortBursteinAriel April 2007	A Dollar Short200704BursteinAriel A Dollar Short It happened in one country after another during the 1990s: a large, contractionary currency devaluation followed by surprisingly mild rates of inflation. But when Kellogg School Finance Professor Sergio Rebelo and his co-researchers looked closely at the aftermath of the devaluations, they observed a remarkably similar set of economic reactions. Whether in Finland, Sweden, Mexico, Korea, Thailand, Malaysia, the Philippines, Indonesia or Brazil, the same patterns in pricing emerged. In each country, the prices that changed most were those of imports and exports at the dock. The prices of these goods in retail stores were more stable, Rebelo's team found.	BursteinAriel200704A Dollar Short Ariel Burstein Craig Burnside Martin Eichenbaum Sergio Rebelo João C. Neves

Posted

Title

Researcher

Other

August 2009

Mysterious Profit
The carry trade is an enigma in the financial world. When experts attempt to explain its continued profitability using traditional risk factors such as consumption growth, stock market returns, and other more complex predictors, they fail miserably. Sergio Rebelo and his colleagues discovered a tantalizing new way to minimize the risk posed by the unpredictable.

April 2007

A Dollar Short
It happened in one country after another during the 1990s: a large, contractionary currency devaluation followed by surprisingly mild rates of inflation. But when Kellogg School Finance Professor Sergio Rebelo and his co-researchers looked closely at the aftermath of the devaluations, they observed a remarkably similar set of economic reactions. Whether in Finland, Sweden, Mexico, Korea, Thailand, Malaysia, the Philippines, Indonesia or Brazil, the same patterns in pricing emerged. In each country, the prices that changed most were those of imports and exports at the dock. The prices of these goods in retail stores were more stable, Rebelo's team found.